Federal court rules California's AB 5 applies to trucking

It’s going to be an even bigger problem to get a can out of the ports for shippers. This will cause nation wide disruptions in supply chains, substantially worse than we’re seeing now.

 

Good for us in trucking. As we’ve seen in last few years, disruptions mean higher rates for us.

 

At the moment, the AB 5 law affects a lot more than trucking. And prop 22 passed in Nov 2020 allowing Uber, Lyft, Door Dash and other entities to continue to classify their workers as independent contractors. There is no way this double standard is allowed to exist. It is a long way from being over.
California Proposition 22, App-Based Drivers as Contractors and Labor Policies Initiative (2020) - Ballotpedia

 

Just the opposite, owner operators only make up 11% of the overall number of trucks on the road. About 40% of those operate as sole proprietors, and those at the ones directly effected if the rules are misapplied. So with about 6% of the trucks gone, rates are not going to rise a lot if at all.

 

Those percentages seem low. But this doesn’t only affect o/o’s , it affects all those 1099 company drivers too. And even if it is only 6% , it will affect the rates in the current market where the capacity is already super tight especially in the west.

 

Doesn't this only affect the people being paid 1099, but getting treated like employees? I figured stopping that is a good thing, but it seems like a bad thing from what you guys are saying. Can anyone break this down "Barney-style" for me?

 

Everyone will need their own authority.....

I think it’s a good thing. But what do I know.......

 

Hope this helps

 

It effects everyone who is an independent contractor, even the ones doing it legally. Think all the guys who own their equipment but are leased to a carrier. That will cease to exist.

 

I thought it was only the ones getting treated like employees? For example, if you lease on, but dispatch yourself and make your own schedule, are you safe?

 

Lol, perfect.